TV Revenue: The Rich Get Richer

Recent valuations of Major League Baseball (MLB) teams for the 2025 season have been reported by both Forbes and Sportico, offering a detailed look at the financial landscape of the league. These valuations reflect enterprise values (equity plus net debt) and are based on revenue estimates, historical transactions, and market trends, though the two sources provide slightly different figures due to methodological differences.

Forbes’ 2025 MLB valuations, released on March 26, 2025, peg the average team value at $2.6 billion, an 8% increase from 2024’s $2.4 billion. 

Forbes notes that while MLB team values continue to rise, growth is slower compared to the NFL and NBA, with four teams—the St. Louis Cardinals, Seattle Mariners, Colorado Rockies, and Tampa Bay Rays—showing no change year-over-year, and the Chicago White Sox dropping 2% to $2 billion.

Sportico, which published its valuations on March 25, 2025, estimates a higher average team value of $2.82 billion, with a collective league worth of $84.5 billion. It also ranks the Yankees and Dodgers at the top, but with a combined value of $16 billion (implying approximately $8 billion for the Yankees and $8 billion for the Dodgers, though exact splits weren’t specified). Sportico’s approach includes revenue from team-related businesses and real estate, alongside interviews with industry insiders, which may account for the higher average. 

It highlights challenges like revenue disparity and media distribution issues, noting that MLB’s valuation multiples (averaging 6.6 times revenue) lag behind the NBA (11.9), NFL (9.3), and NHL (7.7), reflecting slower growth—28% since 2021 compared to 87% for NFL teams and 101% for NBA teams.

Both reports underscore key trends. MLB revenue hit a record $12.75 billion in 2024 per Sportico ($425 million per team), up from Forbes’ $11.344 billion in 2023 ($378 million per team), driven by tickets, sponsorships, and media deals. However, operating income growth is modest (6% per Forbes in 2023), and local media rights—21% of revenue—are under pressure due to the Diamond Sports bankruptcy affecting 14 teams. The Dodgers’ revenue, estimated at $1 billion before revenue-sharing, exemplifies big-market dominance, while smaller markets like the Marlins and Rays struggle to keep pace. Posts on X echo these findings, with users noting the Yankees’ and Dodgers’ lead and the Marlins’ bottom ranking.